Banking News

Figure Acquisition Corp. I Announces Intention of Business Combination with a Large Warehouse Lender and Bank Holding Company

Figure Acquisition Corp. I Announces Intention of Business Combination with a Large Warehouse Lender and Bank Holding Company

Figure Acquisition Corp. I, a publicly traded special purpose acquisition company, is in discussions with a large warehouse lender and bank holding company with nationwide residential mortgage lending and servicing operations (the “Bank”) regarding a potential merger (the “Proposed Transaction”). The Company and the Bank have signed a non-binding letter of intent with respect to the Proposed Transaction.

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The Bank is a privately held, $3-5 billion asset holding company that provides home loans to communities across the nation, and the Company believes the Proposed Transaction is a compelling strategic opportunity. “We believe the Proposed Transaction  provides a unique value creation opportunity by combining the Bank’s sound balance sheet, nationwide footprint and seasoned management team with our team’s deep understanding of, and experience with, the application of technology to regulated financial services businesses as well as the necessary capital to grow and execute against our shared vision of the future of banking,” said Michael Cagney, Chairman of the Board of Directors of the Company.

“I would also like to remind our stockholders that the Company is seeking stockholder approval of an extension of time to complete our initial business combination, from February 23, 2023, to August 23, 2023 (the “Extension”),” continued Cagney.  “We believe the Extension will provide us with the required time to complete the Proposed Transaction. If you are a stockholder of record as of November 14, 2022, the record date for the stockholder meeting, I strongly recommend that you vote in favor of the Extension.”

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There is potential to eventually bring blockchain into the Bank – in particular, there is potential after the closing to begin exploring how to leverage Figure’s DART in the Bank’s warehouse business, which could bring strong potential value to the Bank and its warehouse customers.  This introduction of technology to the Bank will be subject to all required regulatory approvals. This is consistent with the SPAC thesis – find a working business where blockchain can be leveraged in a meaningful way.

Stockholders who wish to withdraw their previously submitted redemption request may do so before 5:00 p.m. Eastern time on December 14, 2022 by requesting that our transfer agent return such shares.

You are encouraged to submit your vote for the Extension as soon as possible to ensure it is represented at the stockholder meeting.  Please note that if your shares are held at a brokerage firm or bank, your broker will not vote your shares for you.  You must instruct your bank or broker to cast the vote.

Completion of the Proposed Transaction is subject to, among other matters, the completion of due diligence, the negotiation of a definitive merger agreement and satisfaction of the conditions negotiated therein, including the approval of the transaction by our stockholders. There can be no assurance that a definitive agreement will be entered into or that the Proposed Transaction will be consummated.

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